In the new guideline, the CBN revealed that banks and other financial institutions were prohibited from holding, trading, or transacting in virtual currencies on their account.
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Any contravention of the rule by banks and other financial institutions would attract a penalty of not less than ₦2 million.
The new guideline is entitled: ‘Guideline On Operation of Bank Account For Virtual Assets Service Providers(VASPs)’.
Issuing the guideline, the CBN said: “From the commencement of these Regulations, financial institutions shall not open”.
Also, Banks must not permit the operation of any account by any person or entity to conduct the business of virtual/digital assets.
Only accounts designated for that purpose and opened in line with the requirement of these Guidelines shall engage in cryptocurrency operations.
“An account opened under these Guidelines shall only be used for transactions on virtual/digital assets and not for any other purpose.
Cash Withdrawals Are Not Allowed
“No cash withdrawal shall be allowed from the account. No third-party cheque shall be cleared from the account.
“Except for settlement of a virtual/digital assets transaction which shall be done through a transfer to another designated account, the withdrawal shall be only through a Managers’ Cheque or transfer to an account”.
According to the guideline, designated settlement account of SEC’s VASPs/DA entities will be opened by financial institutions with the permission of the CBN.
Also, it disclosed that all obligations arising from transactions within the VASP5/DAs entities platforms shall be settled into the designated settlement accounts maintained by them in the banks.
“The designated settlement accounts shall warehouse all Naira positions of individuals with the VASPs/DAs.
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“The designated settlement account, including any associated linked account for warehousing settlement monies, shall not be interest-based.
“The details of the transactions on the VASP platform leading to settlement on the designated settlement account shall be accessible online, on a real-time basis, to the FIs at all times.
“Credit to the designated settlement account shall be for the funding of Naira positions of persons on the VASP/DAs platform,” the apex bank added.
